Brazilian steelmaker Gerdau has announced that it has entered into a definitive agreement with Optimus Steel LLC to sell its Beaumont, Texas wire rod mill and two downstream facilities to Optimus Steel for a consideration of $92.5 million. The transaction is subject to regulatory clearances and customary closing conditions, and is anticipated to close before the end of the current year.
The agreement includes Gerdau’s mill in Beaumont, Texas, and downstream locations Beaumont Wire Products and Carrollton Wire Products. The mill has a melt shop capacity of approximately 700,000 mt, and is capable of producing both wire rod and coiled rebar.
Gustavo Werneck, CEO of Gerdau, stated that Gerdau’s strategy in North America, a key market for the company, is to improve its profitability, focus on more value-added products and better serve its customers, positioning itself as one of the most innovative steel companies worldwide and it will remain committed to strengthening its position in the US in the next years.